Does the Dog Haus franchise agreement cover the sale of proprietary sauces?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
greement**") is made and entered into as of the "Effective Date" set forth on Exhibit A by and between DOG HAUS WORLDWIDE, LLC, a California limited liability company ("Franchisor"), on the one hand, and the individuals or Entity identified as "Franchisee" on Exhibit A, on the other hand, who are individually referred to in this Agreement as a "Party", and collectively referred to in this Agreement as "Parties", with reference to the following facts:
- A. Franchisor, its predecessor and Affiliate have developed the "Dog Haus System" for the establishment and operation of restaurants ("Dog Haus Restaurants") that offer freshly prepared, cooked to order, high quality proprietary gourmet hot dogs, sausages, hamburgers, chicken and plant-based food products accompanied by Franchisor's proprietary sauces and a variety of other related food products, side dishes and alcoholic and nonalcoholic beverages for both on-premises and off-premises consumption under the trade name and service mark "Dog Haus" and other related trademarks, service marks, logos and commercial symbols, and the trade dress used to identify Dog Haus Restaurants, including the unique and distinctive interior and exterior building designs, color schemes, furniture, fixtures and accessories present in Dog Haus Restaurants (collectively, the "Dog Haus Marks").
- B. Franchisee desires to obtain a license and franchise to develop, own and operate one "Dog Haus Biergarten" or "Dog Haus Fast Casual Restaurant" (the "Franchised Restaurant"), under the Dog Haus Marks in strict accordance with the Dog Haus System and the standards established by Franchisor, and Franchisor is willing to grant Franchisee a license and franchise under the terms and conditions in this Agreement.
NOW, THEREFORE, THE PARTIES AGREE:
1. DEFINITIONS.
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the franchise agreement does address the sale and use of proprietary sauces. The agreement states that Dog Haus Restaurants offer high-quality gourmet hot dogs, sausages, hamburgers, chicken, and plant-based food products accompanied by the franchisor's proprietary sauces. This indicates that the sale of these sauces is an integral part of the Dog Haus System.
The franchise agreement emphasizes that franchisees must advertise, sell, and serve only Dog Haus Authorized Products, prepared and served strictly according to the franchisor's methods, standards, and specifications. All Dog Haus Authorized Products shall be sold and distributed under the names designated by Franchisor. This implies that franchisees are required to use and sell the proprietary sauces as part of the authorized product line. They cannot remove any authorized product from the menu without written consent from Dog Haus.
Furthermore, the agreement protects the Dog Haus System, Marks, and Trade Secrets, ensuring that franchisees purchase Dog Haus Branded Products, Dog Haus Proprietary Products, and Sub-Branded Products from Dog Haus Approved Suppliers. If a franchisee purchases these products from non-approved suppliers and fails to cease use of the non-complying product within three days of notification from Dog Haus, it can be grounds for termination of the agreement. This reinforces the importance of adhering to the franchisor's standards regarding proprietary sauces and other products to maintain the brand's consistency and quality.